There are two types of housing loan packages in Singapore: fixed rates or floating (variable) rates.
Fixed rates are sometimes extended for up to 3 years. Still, other lenders can go up to 5 years or 10 years. This is unlike from many Western countries where rates can be fixed throughout the loan tenure.
On the other hand, floating rates are classified into published rates or board rates. Published rates are mainly rates that are released daily, case being the Singapore Interbank Offered Rate (SIBOR) or Singapore Swap Offer Rate (SOR), while board rates are set by the individual bank or financial institution. Many of the lenders put their board rates to a certain financial bench marks, yet the correct components are sometimes not clear and variations in board rates become uncertain.
There are no limits for emigrants going for housing loans. However, the following factors should be regarded.
Loan to Value
In Singapore, the maximum loan to value (LTV) is 90% of the purchase price or valuation, whichever is smaller. Housing loan packages for 90% funding are limited as some lenders do not provide maximum LTV to emigrants. Loan approval for 90% funding is also tighter than for LTV 80% and below.
Income Proof
A letter of appointment from your local employer or your latest income tax assessment is necessary for housing loan. Tax assessments from some countries may not be honored by the local mortgage lenders.
Landed Property
The commendation from Singapore Land Authority is required before emigrants can buy restricted properties such as vacant estate or landed properties such as bungalows, semi-detached, and terrace houses.
In-principle Approval
Try to apply for an in-principle approval before moving with a purchase, since loan applications are more intricate for emigrants. Consider of hiring a good and professional housing loan consultant. This may help you spare time and money with your loan approval.
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